On 15 October 2007, shareholders commenced proceedings against Village Life Ltd alleging that the company and the personal respondents breached their obligations of continuous disclosure pursuant to s 674 of the Corporations Act 2001 (Cth) by providing misleading forecasts concerning the profit of the company for the period ending 30 June 2005. The applicants also relied upon claims for misleading or deceptive conduct under s 1041H of the Corporations Act and similar provisions in the Australian Securities and Investments Commission Act 2001 (Cth), as well as alleging contraventions of s 52 of the Trade Practices Act 1974 (Cth) and corresponding State and Territory fair trading legislation.
Group members in the proceeding were persons who purchased Village Life securities in two periods. The first period was from 8 December 2003 to 1 February 2005 and the second period was from 2 February 2005 to 23 May 2005. Group members also had to have entered into funding agreements with IMF.
The mediation took place on 27 March 2009 and the claims conditionally settled on the basis that Village Life pay $3m.
The Federal Court approved the settlement on 12 May 2009.
1. Strike Out (22 May 2008).
2. Settlement Approval (12 May 2009).